ESG Funds Outperform Non-ESG Funds
Environmental, social, and governance (ESG) investing has become increasingly popular in recent years, and Goldman Sachs analysts have found that funds without ESG criteria are struggling to attract clients. ESG funds are outperforming non-ESG funds, and investors are increasingly looking for investments that align with their values.
What is ESG Investing?
ESG investing is a type of investing that takes into account environmental, social, and governance factors when making investment decisions. The goal of ESG investing is to generate returns while also promoting positive social and environmental outcomes. ESG investing has become increasingly popular in recent years, as investors are increasingly looking for investments that align with their values.
ESG Funds Outperform Non-ESG Funds
Goldman Sachs analysts have found that ESG funds are outperforming non-ESG funds. The analysts looked at the performance of more than 2,000 funds over the past five years and found that ESG funds had higher returns than non-ESG funds. The analysts also found that ESG funds had lower volatility than non-ESG funds.
Investors Prefer ESG Funds
The Goldman Sachs analysts also found that investors are increasingly preferring ESG funds over non-ESG funds. The analysts found that ESG funds had higher inflows than non-ESG funds, and that investors were more likely to invest in ESG funds than non-ESG funds. The analysts concluded that investors are increasingly looking for investments that align with their values.
ESG Funds Attract Institutional Investors
The Goldman Sachs analysts also found that ESG funds are increasingly attracting institutional investors. The analysts found that institutional investors were more likely to invest in ESG funds than non-ESG funds. The analysts concluded that institutional investors are increasingly looking for investments that align with their values.
ESG Funds Have Lower Fees
The Goldman Sachs analysts also found that ESG funds have lower fees than non-ESG funds. The analysts found that ESG funds had lower management fees and lower performance fees than non-ESG funds. The analysts concluded that ESG funds are more cost-effective than non-ESG funds.
Conclusion
Goldman Sachs analysts have found that ESG funds are outperforming non-ESG funds and that investors are increasingly preferring ESG funds over non-ESG funds. The analysts also found that ESG funds are increasingly attracting institutional investors and that ESG funds have lower fees than non-ESG funds. These findings suggest that ESG investing is becoming increasingly popular and that investors are increasingly looking for investments that align with their values.